Pope & Talbot to Sell Pulp Mills to Sinar Mas Group
Jan. 11, 2008 - Pope & Talbot, Inc. said that it has agreed to sell three pulp mills to one or more affiliates within the Sinar Mas Group for approximately $225 million, including the assumption of certain liabilities and $100 million of working capital proceeds that is not subject to the sale, to be realized after closing.
The deal includes pulp mills in Nanaimo, British Columbia, Mackenzie, British Columbia and Halsey, Oregon. All three mills produce NBSK pulp.
"We are delighted with this development, as this is an important milestone in maximizing value for our stakeholders." said Harold Stanton, Pope & Talbot president and CEO. "The past 6 months have been very trying on our folks and it is exciting that they will have the opportunity to join a world class pulp and paper producer like Sinar Mas Group."
The sale is subject to approval by the US Bankruptcy Court and the Canadian Court, and will be affected under procedures that provide for opportunity for other parties to submit competing proposals subject to court approved bidding procedures and protections for the purchaser(s), Pope & Talbot said.
The deal is also subject to customary regulatory approvals in Canada and the United States.
Pope & Talbot expects to receive approvals for the sale and close the transaction in the first quarter of 2008.
Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. The company is based in Portland, Oregon.
Sinar Mas Group is a global enterprise with significant interests in pulp and paper in Indonesia, China and elsewhere. Sinar Mas is the largest producer of pulp and paper in Asia and is one of the top five in the world.
SOURCE: Pope & Talbot, Inc.